The advantage of preferential trade agreements is that they can bring about lasting structural changes. After 18 years in which agoA benefited eging, a predictable general balance analysis from the World Bank in 2018 showed that the termination of AGOA by 2020 would result in a 1% revenue loss and a 16 per cent decline in the textile and clothing industry. But simulations have also shown that trade facilitation measures, which reduce the average cost of trade by 2% per year, would eliminate the negative income effects resulting from the elimination of AGOA. AGOA`s protection of the child industry has allowed the industry to grow and prosper, so that a reduction in trade costs of only 2 per cent would allow it to maintain its competitiveness. The African Growth and Opportunity Act (AGOA) was passed in May 2000 and is the cornerstone of the United States` economic engagement with sub-Saharan African countries. The agreement allows eligible sub-Saharan African countries to enter the U.S. market duty-free. In June 2015, the U.S. government approved AGOA for an additional 10 years. In particular, reciprocity must replace the non-reciprocal structure of current trade relations. AGOA 2.0 must also be developed in a manner consistent with the implementation of AfCFTA. The benefits of AGOA should be extended beyond 2025, as long as agreement has been reached on the gradual application of mutual trade benefits. Phase-in periods are expected to be different in low-income, middle-income and lower-middle-income African countries.

On May 18, 2000, Congress signed the African Growth and Opportunity Act, commonly known as AGOA. AGOA is a trade program that aims to strengthen trade relations between the United States and sub-Saharan Africa. The law establishes a preferential trade agreement between the United States and some countries in the sub-Saharan region. AgoA was initially approved for about 15 years and was approved by the Obama administration on June 25, 2015 for 10 years. In its current form, AGOA will last until September 30, 2025. AGOA is not likely to be subject to repeal either, as it is not a free trade agreement. While some African products get preferential agreements that reduce tariffs, sub-Saharan countries do not work with flat-rate free trade and zero tariffs. In fact, the agreement provides the United States with access to African goods and raw materials that help stimulate the U.S. economy.

Some argue that AGOA is at odds with WTO rules. [Citation required] Moreover, it is considered a unilateral agreement, given that there has been little African participation in its preparation. African countries are the main recipients of GCC development assistance, both in terms of the number of partnership agreements and the amount of aid provided. Of the 33 pacts or grant agreements signed by MCC, 18 are or were with sub-Saharan Africa, or about $6.8 billion in total. These partnerships encompass the continental continent and include extensions to critical seaports in Benin and Cabo Verde, as well as trade routes in Ghana, Senegal, Tanzania and Mozambique.